Top Trade Ideas for the Week of December 24, 2012: The Rest

Abbott Laboratories, $ABT, dipped down to touch the 200 day Simple Moving Average (SMA) and bounced. Rising to the 100 day SMA it is now consolidating under it with a Relative Strength Index (RSI) that is on the verge of a turn into bullish territory over 60, and a Moving Average Convergence Divergence indicator (MACD) that is positive. A move over 66.265 carries a Measured Move higher to 69.25, through the gap.

Choice Hotels, $CHH, rose out of a Cup and Handle and is moving towards the target of 35. Consolidating in a bullish flag it now has a Measured Move higher to 34.50 along the way on a hold over the flag. The RSI is bullish and at the edge of being technically overbought with a MACD that is positive, both supporting further upside price movement.

Cash America, $CSH, one of the pawnshop bunch, has been moving higher off of a bottom at 34 in mid November. After consolidating on the move over the 100 day SMA it moved out higher Friday on strong volume. The RSI is bullish and rising, the MACD is positive and starting to grow again, and the Bollinger bands are facilitating a move higher. The Measured Move from the consolidation zone takes it to 41.

F5 Networks, $FFIV, has been moving higher off of a bottom at 81 in late October after their last earnings report. The consolidation higher under 97.50 has a Measured Move higher to 105 on a break higher. Both the rising and bullish RSI and the MACD that is positive and growing again support more upside.

Phoenix Companies, $PNX, is completing a ‘W’ bottom, and moving higher. The RSI is rising and on the verge of moving into bullish territory with a MACD that is positive and growing. Both support more upside.

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Saturday which, heading into the last week of the year sees is a positive tone in the price action of equities. That said Gold looks to continue lower while Crude Oil rises. The US Dollar Index seems content to move sideways with a downside bias while US Treasuries are biased lower. The Shanghai Composite and Emerging Markets are biased to the upside with risk of the Chinese market reversing. Volatility looks to remain subdued keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ, despite the moves lower to end the week. Use this information as you prepare for the coming week and trade’m well.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)

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